Growth in an Unsettled Market – Part 2

Reprinted with permission from Accounting Today

More Tips and Tactics for Managing Partners

In part one of this article, I offered guidance to help managing partners leverage the relatively good conditions in which many currently find themselves. I warned, however, that, “unless firms act quickly to chart a course for post-pandemic growth, this temporary uptick will remain just that.” Now, in part two, we delve into the principles and tactics involved.

Two Hats at Once

One of the most relevant concepts is that of concurrency—it takes as much time and energy to sell something as it does to get it in a state of readiness to be delivered. And both processes must take place concurrently. Typically, accounting operates in a kind of start-stop cycle—we focus solely on producing widgets. Then when that work is complete, we address how the widgets will be marketed and sold.

The challenge is that a typical sell cycle in our profession can take months or longer. If we don’t pay concurrent attention to developing offerings and driving demand for them, our pipelines will dry up in short order.

Managing partners and other firm leaders are certainly aware of this imperative. It’s just that they’re often too busy getting the laundry out the door to pay attention to strategic growth (sustainable and most profitable). Another challenge is the diverse and dispersed nature of current markets. In the past, a buyer was a buyer, and all were equally welcome; we used referral sources to catch one fish at a time. Today, using a variety of distribution channels, we can attract many buyers at once in selected markets.

Caution: Upheaval Ahead

 I see the post-COVID period as one of massive upheaval, though exactly where that upheaval will lead is uncertain. As a huge rock ‘n roll fan, I was struck by the analogy of the current market to the London music scene of the 1960’s and 70’s. It was a time of tectonic shifts dominated by the then-new sound of electric keyboards and guitars, with diverse musical influences from folk to rock and R&B.

A sure sign of upheaval in our industry is the concurrent surge on multiple fronts, such as regulations and potential regulations like PPP and tax laws, the interest in SPACS (Special Purpose Acquisition Companies), as well as tech innovations like bots, blockchain, AI, machine learning, and of course, the cloud. Also in play are market forces and emerging opportunities like ESG (environmental, social and governance) and cannabis.

We also have the maturing and integration of capabilities to drive digital demand, which has taken on particular importance during the pandemic.

The basic digital tools, like websites, email newsletters, video and LinkedIn, are known and used by most firms. But beyond establishing legitimacy and listing services, organizations now have the opportunity to shape a buyer’s online journey with strategically-dropped-digital-crumbs which lead them through a tailored buying experience.

Whether your goal is to stratify potential buyers by industry, or need (R&D, automation, tax credits, etc.), it’s in your power to engage with them from that first digital encounter, nurturing and leading them with white papers, downloadable surveys, LinkedIn groups and other assets.

In a recent conversation, CPA consultant, author, and speaker Amy Vetter noted the need to explore the human/tech relationship and redefined roles, to lean into the full potential of technology. Although cyborgs are typically humans with machine parts, it’s been said that a person could be called a cyborg when using specific wearable technologies, or even using laptops or mobile devices to do work. Her area of inquiry holds great promise for future exploration and learnings.

Need for Speed

One final suggestion for post-pandemic growth planning is the need to pick up our pace. Speed is necessary to capture the full potential of changes brought about by the current upheaval. It’s not only about potential, but relevance in the market. The challenge is that accounting firms are built for accuracy, not speed. Precision is at our very core, and not to be sacrificed. However, speed in decision-making and execution in today’s times is also essential.

Consensus decision-making within a partner group is slower by its very nature. It’s quite different from typical corporate pyramids, like technology companies. Mid-market firms will need to continue to figure this out.

One factor working against that need for speed is insufficient person power. Our firms are chronically understaffed, yet we’re behind in investing adequately in HR infrastructure. My years in tech taught me that HR was critical to sustaining revenue growth rates, which were often up to 30% annually.

Girding CPA firms for post-pandemic growth can be a do-it-yourself/internal initiative. Or, MPs can reach out for the support of trusted outside experts in practice management, HR, technology and growth. I tell my clients it’s a bit like that deck you’ve been wanting. You can go to Home Depot, amass the supplies and build it yourself, or find a guide and get there faster!

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